this includes the apple watch, apple tv.devices see more and more people wearing them. >> racing that -- some people think it will be bigger than the apple watch. >> of the biggest next platform. them, i don't have they're back to being classic. opinion question -- everybody says good things about them. as a apple fanatic i haven't gotten my. . >> is in danger of losing -- over?, lexus, is that quick they're clearly behind on that. clearly the doing as well and on the views. >> i've never seen a person -- except people i don't want to talk to. anytime i see here -- no one here use. [laughter] do you use siri? julie: my kids use it for fun, that's about it. people use alexa. joe: margaret stats, $10.7 billion in china revenue, down from the center last year, when it was $12.5 billion. what happened? this was the story. cory: still of the china story. in a trailing basis that will put china revenues of 22% overall. it's a huge business for apple. placely most important for apple after the u.s., maybe more important -- >> in th

, but it isn't in apple's dna to be that way.hether it is a watch -- there's so much that could happen. you can have augmented reality. they could get into cars, they could get into the home just like we talked about. maybe because i'm not like warren buffett and, you know, just sort of hard core financial guy, i'm looking for the excitement of the next big thing, that makes me look for where will apple go next. >> well, certainly the apple and amazon stories dove tailing today, walter, as you already referenced. amazon this morning unveaed a new echo device called the echo show an released video with which to sell it. take a look. >> with echo show he can stay connected, even when his hands are full. >> mom would like to talk. >> alexa, accept the call. hey, mom. >> hi, honey. how are things? >> the show brings traditional echo features together with regular capabilities including phone calls, youtube, camera and more. available for preorder, $230, will be available on the 28th of june. shares of amazon did hit all-time highs ea

apple shares trading lower.coming in below analyst expectations.customers are holding onto iphone s longer, likely waiting for the iphone eight this fall. we are expecting a big design overall -- overhaul. the ceo tim cook says he thinks people are waiting for the new iphone. on tap is wednesday, earnings from facebook and tesla. both stocks seeing massive growth this year. coverage and reaction throughout the show. that does it for this edition of "bloomberg technology." on wednesday, we hear from eventual capitalist thomas pauly co-owner of the and sociale warriors capital partnership founder. it has been wonderful being back with you all. this is bloomberg. ♪ ♪ from our studios in new york city, this is "charlie rose." president donald trump marked his first 100 days in office this weekend. this is typically the historic time where the president's use their momentum in popularity to set the agenda for the next four years. it's a common benchmark for evaluating their performance in office.according to the late

with apple music. they don't think of apple music as just a place for songs.y think of it as something much broader than that. maybe a push into original programming. apple is sticking with the forecast that they'll double services within four years. >> josh, did tim cook make any comments about the dispute with qualcomm? >> he did. that fight with caqualcomm has gotten ugly quickly. apple is saying you're charging us excessive royalties, charging us for technologies you have nothing to do with. qualcomm said you built this iphone franchise on the back of our ip, you're trying to pay less. in my interview with cooks he ma wo cook, he made it obvious he's not backing down and it's something the court also have to decide. >> the stock is down pre-market, 1.5%. is the upshot here disappointing quarter but just raises the expectations more for this iphone coming out this fall? investors are willing to write it off? >> right. i think this stock was up 25% year to date heading into the print. it was up 60% from the low last may. largely that is due to expect tas exp

apple fares well, also. the halftime report with scott wapner is back in two minutes. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. >>> mcdonald's getting more love today from wall street. goldman sachs updwrading the stock to a buy. they admit they're late to the party. we acknowledge we're upgrading near an all time high in shares they say. good call? >> well, at least it's good to get off the neutral. >> there's been five upgrades this month. >> yeah and because of the outperformance that you've had here, judge, i can't jump on it with them. i'd much rather on sonic at this level than chase the 16, 18% whatever mcdonald's is is up. sonic is up on. i like the opportunity there to move u another 15, 20%. if i owned it, i wouldn't sell. >> this one feels like it's go a lot of momo back. right? the comp's most recently, were good. it's more than just th

beginning, though, with apple's earnings, due out after the bell, and josh lipton is at apple headquarters with numbers wall street is looking for, josh? >> reporter: bill, when apple reports today after the close, there's key numbers to focus on. one, of course, analysts do think apple, 52 million iphones in the second quarter implying growth of 2% year over year, and analysts say iphone fans could now be deferring upgrades because they are waiting for that new iphone to arrive in the fall. of course, the key debate on the street is whether that new iphone is going to spark want big upgrade cycle that bulls are counting on. also, this is typically the quarter when apple updates capital return program. ubs thinks apple authorizes app additional $40 billion stock buyback and boost dividends by 10% to 62 cents. beyond hardware, they pay attention to services, incoludig app store and apple music. in 2016, services representsed 12% of total revenue, surpassing the mac. they question whether services decouple from the iphone, meaning keep growing strongly as the iphone franchise matures. there

david: tech giant apple is out in just moments. we'll get a gauge how the iphone is selling amid one ever consumers biggest gripes that they're too expensive. >> i think they you should start lowering their prices. i think they're still kind of pie in the sky level, too high. they're not only kid on the block. i think they need to realize that. so what else is new? how's your mother? umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. try new flonase sensimistgies. instead of allergy pills. it delivers a gentle mist to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist. david: president trump has a possible solution for the mess in washington. he tweeted out a plan we need 60 votes in the senate which are not there. we elect more republican senators in 2018 or change the rul

what's coming next for apple?expectation is so important, the idea that people are hanging on, they are not really convinced that what apple is offering is revolutionary enough to upgrade so they won't change their phone yet so they won't change their phone yet so they have got to pull something drastic out of the bag to persuade us drastic out of the bag to persuade us to part with money to buy the next one? they have certainly made a rod for their own back and they have commented themselves upon that. they have seen strong upgrades for existing apple users upgrading to the new phone, they have seen strong transition from other smartphones into themselves, so what will be next? i think, into themselves, so what will be next? ithink, we into themselves, so what will be next? i think, we are waiting on what's the next phone coming out on an annual basis? for apple they manage to do that themselves, don't they? they change our behaviour, they? they change our behaviour, they are making us want things we don't know t

that's absolutely apple's bet.he resources, the people, the brand, they continue to attract the best partners, best people, best developers. it is a lot. you look at the success of small f.a.n.g.s, not just services, but air pods, the new -- in the ear phones, bluetooth phones, they're starting to take off. and they experimented with watch. augmented reality, they have so many things that they are testing going forward and they have the resources to do it. i think as dan points out, you have those kinds of resources, that kind of brand, you just continue to distance yourself from a competitor, so i think it will be an interesting year and that's a lot of what people see happening within apple. a reason people are enthusiastic. >> it is always a fascinating quarter to look at and call to listen to. kate, dan, thank you. appreciate it. we'll see you next time. >>> when we come back, back to the global conference in l.a. where david is setting down with mark attansio, and then to microfost's education event with youse

emily: what about apple? >> apple made their most recent hire to head ai.think they should have every reason to do well given they and canlosed ecosystem learn so much about the users, but they started behind. emily: where do you think you will be placing your bets? >> financial industry. our most successful investment in ai right now is in a company that underwrote 30 million lines this year -- loans this year. i think insurance, banking, investment. we are long-term optimistic about autonomous vehicles as well as robotics. emily: your private banker is out of a job. always great to have you here. a story we are watching. the founder is stepping down from operations of the online streaming service. he is a chairman of the company. it has grappled with a cash squeeze leading to challenges in fundraising and unpaid bills. coming up, it is a major c.e.o. shakeup at ford. what it means for the self-driving car ambitions, next. we are live streaming on twitter. check us out. this is bloomberg. ♪ emily: a surprise shakeup at ford. he is out after less than three

apple shares following 1.8% after hours.tear recently at 57% in the past year and they have soared to recent record highs. nicole: face but investors watching the earnings report after the close today. face up to post revenue and earnings increases of about 45%. facebook has warned it is running on this space for ads on it newsfeed. the company will be expected to indicate for a second-place amount. the video strategy in the latest numbers on the user rose. hitting a record high yesterday up about half of 1%, close to 52.78 and is up almost 30% in the past year. lauren: joining us now to talk about facebook is the founder and chief analyst with disruptive tech research. let's dig into facebook now. good to see you again. we are expecting facebook earnings after the close today. the stock keeps hitting new record highs. born in the explosive growth has got just well at some point. is that a concern for you or is that a sign of face the been a mature company? it's not a concern. i wish mark zuckerberg to say anything snap chat

mostly shirking off apple's this, and take a look at apple suppliers in taipei.ok of mixed as iphone sales fall before the next upgrade. are looking at the next iphone-like assembler. aussie stocks headed for the biggest loss since march. weaker iron ore. the ringgit rising for a six today. he likes the ringgit, but be wary of the kiwi, but is rising after today's it jobless data came in better than expected. ♪ emily: this is "bloomberg technology." i'm emily chang. let's get back to our top story. apple's second-quarter results. the stock casting a huge shadow over the markets. it is the top performer in the dow this year with a 27% gain. wall street analysts have 39 buys on the stock, and gina barton adams, chief equity strategist at bloomberg joins us now. we have been watching earnings, up 27% year-to-day. is it worth it? reporter: i guess investors are willing to pay for it. it is one of the strongest performers in the tech sector and broader markets. it's interesting because investors seem to be looking forward to better times ahead. when you look at apple'

i think apple doesn't get enough credit.hey did an operating system upgrade recently to 10.3, ios 10.3, which included a file system change. i cannot overstate that technical accomplishment. i mean, historically file systems have been the hardest thing for software companies to change. microsoft has run up on the rocks several times on this. i don't think apple's problem is lack of innovation. the problem is everyone is on their second or third smartphone and they just don't feel a sense of urgency to get great new technology because the phones do so much already. there's just not that much you can do to change the perception of what a phone can do. this next product, the iphone 8, its you can ssuccess is based ot that there are a zillion iphone 5s and 6s being used about i people a -- by people and they are going to need to be replaced. apple should be a value stock. it's up 50% as you pointed out. it's not the same value it used to be. none of these things are. >> would you put it in the value stock category or not given -

of apple. carolina is not going. >> it's not okay though, a replacement cycle? >> i think the install basis has plenty of room to grow. i think this is where you want the services growth to go. when you ask me, we have at least two-quarters to go before we get into prime time apple. we got out of the best two quarters of this company. i don't want to own it after a 60% move. at evaluation, that's suddenly not that cheap. people talk about it x cash, $250 billion offshore, you can't treat that as cash. they've already mortgaged some of that in the bond market. >> karen, fresh market in apple yes or no? >> if i owned it, i wouldn't sell it. >> okay. >> that's yes. >> you wouldn't go out and buy it foreman $45 bucks. >> i wouldn't have owned it if there were something great happening today. so it's still -- >> it means today for something happening in september. >> me not at this price. i may regret this six months from now. >> given the vix trading single digits. given this was not a great quarte

talking about apple.daq,ows how the which hit another record high has been powered up by apple to some extent. you can see that with apple included in nasdaq's total , but if you growth remove apple, just shy of 160%. important apple is as a retains its status as the world's most valuable company. you have been taking a look at the yen, i believe. haidi: that's right. the two stories, apple and the , not much in terms of reaction on the equity's story. -- equity story. japanese markets not getting a chance to react to this yen weakness. , technicalsat this when it comes to where they again is at now, still above that 112 level. the dollar is at a short-term peak. we do have a call from rbc saying it should be easy to get but japanese markets are off until monday, some not getting a chance to get the boost from a weaker yen. we are 30 minutes away from the open. singapore, taiwan, and malaysia rey.ing the trading fo sophie: not much in the way of direction to guide the fomc, singapore coming online come up

figures for the apple watch.tators believe the accessory is a clunky dud while ceo tim cook has hinted apple's wearable division is worth between $5—6 billion. what you writing? i love chris. i love working with chris. wishful thinking. with us is maike currie who's investment director at fidelity personal investing 0bviously obviously the french newspapers make fascinating reading if you can read french. luckily savvy can do a bit. they are focusing on the presidential debate last night which was fiery and very personal. presidential debate last night which was fiery and very personalm presidential debate last night which was fiery and very personal. it was very personal. a clash of politics and personalities. the two candidates can't be more different and while the key issues for these two are around europe and immigration, there is a bigger issue and the big debate and that is the debate about times, around nationalism versus globalisation, the world versus the nation and that is quite interesting. you say tha

that includes app store downloads, apple pay and apple music, and they are now worth 13% of total revenues0liver, founder, people.io. good morning. just because of the sheer size of apple, all of those numbers sound impressive. what is your take on how they are doing? people are talking about everyone waiting to get the new iphone later in the year, but if you were to speak to a friend about the latest version of the iphone, it is missing a headphone jack. that in itself may be putting people off purchasing the phone right now. whether they are waiting for later versions or replacing it with the current version is a question to be asked. apple need to find their way in revolutionising the industry. there is talk of apple going out and purchasing other tech companies, we have already seen delays in the introduction of carpool karaoke, so i wonder where they will be making their name in the innovation space. that has been a problem for a while now, with apple. we keep talking about the next big thing but we have not had that for a long time. the iphone has become the bread and butter. how lo

now apple we're doing great with apple.y you know everybody gets so concerned about iphones. iphones are selling, you know, right now we have a great promotion on iphones. and, you know, iphone has a tremendous loyal base that when the new iphone comes out, there will be another record launch. you know we're continually talking to our customers and our apple customers are waiting for the new iphone to come out. and our galaxy customers are so happy with the new galaxy s-8s. so this is an industry where consumers get innovation every single year. we continue to see record launches every time. either one of these two manufacturers go to market. >> marcelo, we have to leave it there for now. but we know we'll be paying close attention, perhaps see you again soon. marcelo claure from sprint's headquarters in kansas. >> thank you. >>> we take you to washington, d.c. and the fbi director james comey testifying in front of the senate judiciary committee. >> i promise to give you that kind of answer today. i appreciate the conferen

it's apple. one of the largest shareholders of apple. he's not a tech investor. not the janice funds of the '90s, so it's rare for him to have a large position. you bet on the wrong horse, now, he thinks he's in the right and by the way, the dividend argument doesn't sway me. on a total return basis, ibm is up 113% from 2009. that includes dividends, the xlk is up 365%. even the s&p is up 311 and if upg about ibm as a long-term investment back to 1999, this stock on a price basis is only up 11%. it's been a terrible stock. you did much better pretty much everywhere else. s&p 500 up 141% since then and that's with 250% crashes. what he said on this show when they reported earnings, it broke below the 200 day moving average. that was your sign that a, there are large sellers here who want out and b, the up trend is over and then the seblgd thing to keep many nimind is now you've t a declining 200 day moving average. it's rolling down. you're not going to attract a lot of new investors coming in here for the growth. this is to me, a very easy sell and i don't see a

coming up, apple is gearing up to take on amazon apple -- echo and google home.will bring you all the details next. this is bloomberg. ♪ labs has ended and 11-month product drought -- an 11-month product drought. it's the first redesigned camera since they -- this newest camera has some tech upgrades. it shoots higher resolution video that allows users to more deeply zoom into footage without losing as much clarity as the current footage -- version. the camera lens will automatically fan -- pan to follow a person as they walk around the room. apple is said to be on the verge of introducing a siri-controlled smart speaker. the device would rival amazon echo and google home. it's just another drumbeat as apple prepares for its worldwide developers conference next week. joining me, alex webb. what do we know? alex: we know this is in production. a taiwanese company has started making these things. there's a good chance it will be unveiled next week, ready to be introduced to the market, to actually be put on sale later in the year. given that amazon has just introdu

that's the bold case for apple. in that sense apple has value. the rest of the tech sect, my god, fanciful prices. it's a bubble. trying to sell it or short into the bubble, it's called a widowmaker, but anybody has to say this is madness. >> or the trend may be against you. who knows. steven, thank you very much for that, steven isaacs. arjun kharpal, thank you so much. >>> we'll go for a quick break. check out world markets live our blog which runs throughout the european trading day. we'll be back with plenty more. uk data after the short break. >>> hello. welcome to "street signs." i'm carolin roth. these are your headlines. >>> third time unlucky for sainsbury's. the british supermarket chain posts another year of profit declines and says price pressures remains uncertain. >> it's not that bad. what was very encouraging last year was that where the total sales of food were up last year, like for like was impacted by the -- because we opened some space. >>> apple's ceo tim cook blames rumors around future products for missing revenue targets.

. >> it's the worst case for apple ever. he doesn't even own a smart phone. that would scare me. >> a lot on the apple. >> okay. our thanks to becky for good coverage over the weekend. scott wapner at the sohn conference. >>> welcome to a special edition of the halftime report. i'm scott wapner and we are live today from the sohn investment conference at lincoln center in new york where some of the biggest money managers in the world are pitching their best ideas to try and end childhood cancers. cnbc is the exclusive broadcast partner and we'll speak to two of those investors in a little bit about their big ideas. brad and keith meister, also with us for the hour today, three of our own. joe, steve and josh brown. it is a great event. one that moved stocks, if not the markets themselves. there's one stock on the move today, apple, another all time high. you know, josh, this is becoming a recuring theme. market opens, apple hits a new high. qs hit a new high. >> here's what's interesting about apple that i don't think a lot

mark: let's get to apple.ure on apple when it reports second-quarter earnings after the bell today. shares are soaring. now, colin gillis, senior tech analyst at bgc partners, who has a hold rating on apple. great to see you. you're in the minority. 80% of analysts have a buy rating on apple. what do they see that you do not see? colin: everyone loves apple. that has been the theme. there is a lot of excitement about what they call the super cycle coming up, the 10th anniversary of the iphone. what we see is a company that remains very much dependent on the sale of hardware. and on the software side, lagging behind competition, particularly google and amazon, artificialy in intelligence, home automation, and a whole other list of topics. basically is apple not building a platform that will fuel growth. is there anything it is doing in the background that gives you hope it can fulfill that multi-decade requirement? the key thing is the genesis of the company. we still view that the company on making excellent h

try and get 60% from apple -- on getsrawn -- pegatr more than 60% from apple. you can expect some earnings downgrades. dependenceuch happening there. thank you so much for that. up, black rock's view on the chinese real estate market as property prices are just coming in. find out what the world's biggest asset manager says coming up next. this is bloomberg. ♪ rishaad: you are back with bloomberg markets. i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. google.ooking at announcement at the company's annual developer conference which usually focus is on mobile hardware. transfer effort to google into an ai first company. google's plans may threaten and nvidia. intel rishaad: singapore airlines may recruit pilots to be trained on boeing. is hiring first officers with 750 hours of flight time to work on its airbus aircraft. the kerry made by or lease wide-body jets and may use boeing triple sevens. the producer of the willful wall street is talking department to settle a lawsuit. it was called funded by the stepson of the malaysian prime ministe

we know that apple story, that apple uses cheap labor overseas to makes it iphones. is this a dangerous spot for any company to be in whether or not it is being patriotic. >> you are not going to publicly shame a corporation to may more tax than they legally have to. this does not mean going -- any rate will magically bring the money back. because why? if it is not taxed abroad. there is no reason to bring it back. we don't tax it until it comes back. there are fundamental flaws with the global corporate taxing a. it may only be solved by a 0 tax rate. a lot of other countries have lowered their rate lower than hours. liz: ireland did that. i think this is most purpose policy issue for trudg trump administration. the cheapest form of stimulus. what do you do? >> what do you do? i think th gue makes a fine point that it is is not just about lowering the rate to say 10%, because apple can borrow at whatever, 1%, 2%, 3%. i would go a stip further say not that simple, when making a deal, donald trump, tim cook whatever. donald trump has to create a whole incentive vickur

and i think apple's a big head scratcher. everybody's buying this company in anticipation of its next product releasement, which should be later this year. so that's the big question. do you feel like apple is going to produce this must-have phone that is going to drive all of these people there? i don't know. i can't tell you. >> all right. kim forrest, love the jean jacket. kim forrest. >> thank you. >> it's not just technology stocks that investors are buying up, but etfs as well. investors plowed on average more than $1 billion a day into exchange traded funds last month. and tell us about the trend continuing. >> for the etf business, april came in like a lion and out like a lion. etfs continued strong in april. roughly the same inflow we've seen every month this year. the four-month total is $170 billion, the highest ever for four months. at this pace we could have a $500 billion year for inflows, which would be a record. so three sectors saw particularly strong inflows. flows were strong into european funds. third, eme

on fast, apple gone wild. the stock soaring to all-time highs as the market cap passes $800 billion for the first time ever. 30% in 2017 alone. can you still get into the name? the street is on fire with media deals. what could be the next mega merger. the traders make their big predictions. and betting big on one group of stocks. we'll tell you what they are and why they have more room to run. but first with ekick it off with the sohn conference. scott walker will be talking to th gundlach in a moment. long emerging markets. tim sea mour, you're an eem merchant. >> this is a trade i've been long for a long time. i actually think emerging looks good against the etf. if you spread it over the spy, you can see the ratio, somewhere around 16.8 right now. some key levels to break through. emerging is absolutely out from the s&p. a lot of the bogeys for em, really, the big hurdles for em have been dollar related, growth related. those economies are starting to move. if you want to see a trade, we talk about this on

but we're going to talk apple now.alk apple. >> she's beautiful, dom. >> thank you very much. >> safer space, go to apple. >> he's learning. >> i am learning. >> apple reporting earnings of $2.10 a share, eight cents ahead of estimates. revenue missing the mark on weaker iphone sales. apple's ceo tim cook telling cnbc that we're seeing a kind of delay in purchasing behavior that we think is a consequence of the number of rumors and reports about future products. people waiting for those. that is happening. that is happening. andrew's one of those people i think. >> you look at iphone outside of greater schaen. separately apple hiked its return program by $50 billion under pressure from shareholders to hand over more of its cash hoard which is at 257 billion. and now yield about 2%. joining us is steven milanovic and he covers apple at ubs. i was going to look up to see how many twitter -- you on twitter >> no, i'm afraid we're not allowed to be on twitter. >> the reason i was looking it up, you've almost broken through

apple is a cautious company.- they test something a million times before they release a new product. when it comes out, it has to be perfect. iovine, to jimmy i'v jimmy and he just wants to throw stuff out there and see what works. it is a very hollywood approach. it is an approach that has at times caused problems within apple, but when it comes to trying to put together, get exclusive music or putting together a video series, he is vital. he is part of apple, but running his own company at the same time, trying to have been breathing room to experiment and see what they can come up with. oliver: up next, famed chef wolfgang puck downsizes for his latest restaurant in west hollywood with a single table for 10. and, one of the pioneers of indoor skydiving. this is "bloomberg businessweek." ♪ oliver: welcome back to "bloomberg businessweek." i am oliver renick. you can also catch us on the radio at sirius xm channel 119. and on a.m. 11.30 in new york. a.m. 960 in the bay area. in asia, on the bloomberg radio plus

consistency si, apple, google. i think apple is the story. you're talking about taxes at this point. so they have a boatload of cash offshore. i think if we get close to the 10% we patriation, i think that creates a little upside vacuum to an otherwise conservative apple. but there's nothing conservative about being up year-to-date. >> is it the reality it doesn't make a difference for a company like apple? they still have cash here that they generate in the united states. 10% tax? who cares? >> it's a great headline. it was the headline today. i get it. i think they've effectively done swaps by doing these $50 billion bond deals. i think investors have already been given back a lot, frankly. a company that could be incentivized, when we get back toe-this is a hardware company, not so cheap anymore. it's been anywhere from growing 25% to 30%, that's great. got to mention google. and to me, their numbers were so far better than everyone's relative to what you need to see at this level of valuation. in other words, it's a company trading 22, 23

apple talked a lot about content. content is a big area for apple. they're investing heavily in that not just in the music side but on tv shows as well. apple will hope some of those 700 million users latch on and pay for additional services. that will boost margins in that business. >> speaking of content, twitter had big news out over the weekend. what do you make of that? >> the thing i fear with twitter, they will launch themselves into a content spending war. everybody wants to talk about content now. apple, netflix, amazon, the traditional content providers. that means that twitter could set itself up to clash with some giants who have much deeper pockets, and also with investors willing to tolerate spending. something that twitter does not have the advantage over. that's one of the key fear force m fears for me. >> that's twitter's last attempt to survive. so they have to throw everything at it. >> really is. this is is a place where they see a niche. people tweet about sports, politics on twitter, they could latch on to that platform, but the

said that apple shares were up 4%. that was snap. apple shares are up 1.6%.y rules are fated to change according to the fcc chairman. he recently gave more on his take on the state of neutrality while speaking at the right-leaning american enterprise institute friday saying, you do not need a weatherman to know that the wind is blowing towards modification or elimination. the fcc will vote on may 18 to formally begin the process of loosening regulations that enforced and that neutrality rules for internet service providers. disney could be headed to the top of the summer box office. the studio hope to capitalize on the power of proven franchises, pulling out sequences -- sequels. guardians could top $1 billion in global ticket sales. the summer movie season is a bellwether for the year, generating almost 40% of annual domestic box office. the world turns to francis bacon of the country built for its next president, and the polarized race is getting heated. we will discuss how big the problem is and what tech giants are doing about it. ♪ emily: ahead of the fr

in terms of people who expected a lot, and i think the apple story talks about this, people we re apple about this, people were expecting lots of tax breaks and big infrastructure spending. that is definitely not happening. well, not yet. not yet, but people are losing hope, asking when it is going to happen and whether he can even pay for it. the general impression that i get, and i spend lots of time in the midwest, because of myjob, lots of people who are initially saying they were going to vote to him are now saying, no, no, we didn't vote him. they are denying it? silenced trump voters. well, he still has a lot of support. yes, he does. let's move on to events in south korea. moon jae—in, does. let's move on to events in south korea. moonjae—in, it is not just tensions between north and south, but tensions between the south, but tensions between the south and america, if he gets his way with north korea policy. yes, which is interesting, because that was one of the other things that keeps coming up in the us, why has donald trump suddenly focused on north korea? what i found very i

what this does is pylon pressure for apple for later in the year.h anniversary iphone coming up and people expect big changes. there could be a delay because of those changes, if there isa because of those changes, if there is a drastic new direction for the phone but unless apple delivers strongly on what people have, on their high hopes, it could be troubling so that is why investors have been worried. despite sales being down to the iphone or all there is still rather cash rich. yes, very cash rich. we found out today that they have $250 billion in cash held overseas. that is a huge amountand cash held overseas. that is a huge amount and the company is spending some of that cash in rewarding shareholders but they are also under pressure to repatriate that cash into the us to make acquisitions. if they do that, they will need a tax cut in the us because right now the cost of bringing that money back into the country is high. they hope, along with several other technology companies, the donald trump make give them a tax holidays that money can come

goldman, j prpm, dupont, apple,e biggest laggards. the biggest are apple, intel and boeing.k in a minute. welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. >>> google is kicking off its conference today. josh lipton is live at the conference with a preview of what to expect. >> when he takes the stage here to deliver the keynote at 1:00 p.m. eastern, the expectation is that he's going to talk a lot about google assistance, its answer to apple, siri and ama n amazon's alexa and we could get updates on google's hardware. for example, google home, the smart speaker that answers questions and plays music. there could be additional pressure on google to offer updates today because we know it is playing catch up with amazon, which dominates 70% of the market versus just 24% for google. amazon benefits from first mover advantage and continues within thi

come on. >> apple is buying -- apple is sucking up and the money off shore.f we had a hint -- >> i like the way grasso thinks. >> a hint of any of that money coming back permanently, you can't sell it. >> again, this is not new news. stocks move -- >> would you say apple's valuations were ridiculous? >> i would say that people have bought into it and i don't know who the next buyer is going to be. it's not going to be b.k., i know that. >> it is not owned by enough yet in the wall street world. >> a lot of them have it. >> owner owned? >> i did not buy those. >> they did not believe the hype before. >> somebody bought it from 90 up to 150. >> it was all warren buffet. >> come on. >> i have a question. >> i like questions. >> 2400, the more 2400 is a resistance for the overall markets, can apple go much higher? >> you're assuming we're going to stop. i'll play the game with you. >> if it goes up -- >> if we stopped here, one, i'd be very surprised. we've been here for seemingly the last two and a half months. if we were to stop here and roll over, i don't thin

apple falling in extended trade.hone in the second quarter against forecasts of it to 1.4 of 51.4trade -- million. investors are expecting in major iphone upgrade later this year. global news 24 hours a day powered by more than 2600 journalists and analysts. i am paul allen. this is bloomberg. several asian markets are closed today. sydney, withn aussie stocks falling for the second day. stocks in the red, matching that dreary weather in sydney. we are going to get into that shortly. miners also under pressure. gold is just holding steady. despite oils terrible performance on tuesday, energy shares are leading gains over in sydney. going back to that telco story. plunge asing shares much as 27% after its trading update. it is trading at the lowest september 2013. we are seeing a harsh reaction in the market. are maintaining a buy on focus. now some other stocks in sydney. downer edi has not raised its offer for spotless. at 115 aussie dollars a share. they said shareholders should reject the takeover offer. 20% stake

apple only has apple music, which was supposed to be the competition for spotify and youtube, and it a testbed for different video projects. all of this is led by jimmy i ovine, a famous record executive. carol: you write in your article that this is about apple keeping people tethered to apple products and the iphone specifically. >> yeah, apple makes two dollars out of three dollars selling iphones. it is the house that steve jobs built. the best way of keeping people tethered to the iphone is with services they hope that gives people a reason to use the iphone instead of any competing products from samsung, google, and whatnot. you have seen the rise of different apps and services that could potentially cause people to abandon the iphone or feel that it is less special. the iphone has been presented as a symbol of cool for so long, now most phones look more or less the same, so one way to keep ahead of the competition is having something like apple music, a service people love and can only get on that phone. carol: thanks to netflix and amazon, we have seen some really nontraditio

is apple now like microsoft?ll-run company that kicks out tons of cash and if you want something to stick in your back pocket for the next 20 years, it is a great company se attributes are exactly what you want. it is a cash flow stream they will give back. it is -- is that the way to think about apple or is something to change? it will have to be quite a change to justify anything kind of a significantly raising here. mark: it is hard to do anything other then iterate on the iphone. anything else they have tried to do does not make -- does not really move the needle to be honest. that is exactly how you think of it. actually, i think it is either an income stock or training stock. there are those who have traded effectively. if you think about it, the share price now is only 10% above where it was at the previous peak two years ago. if you are buying a long-term growth name, it does not work anymore for that. guy: let us think about the wider universe. how does it compare with google? how does it compare -- when

>> it's not just apple. it's big cap tech. >> apple is up 70%. it's happening around the world. >> interesting. still ahead, snapchat gearing up for its first earnings report since going public. results give investors the confidence they need to snap up shares on the ipo. our traders weigh in, it has been quiet in stock land. some call it deserted. a number of other asset classes have gone buck wild. we will give you the names and tell you what it means for the market. much more "fast money" after this. this. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up so

apple itself hitting an all time intraday high. how many of these two key earnings reports are going to dictate whether the nasdaq and tech can keep rolling? >> huge. very huge. let me throw out a stat to you real quick. last year at this time, apple's straddle, that's the combination of the call and put, were trading for almost the same price it's trading for now. difference is last year we were going to it with a 104 price on apple. now it's a 147 or 148 price tag. so, in other words, the amount of premium that people are putting on this is way too small, in my opinion. just like people talk about the vix all the time. oh, it's so cheap right now, and it is. there is no reason not to be hedging apple into this event tonight because i think they're pricing way too little into the potential movement. but is it going to be a market mover? i think it is. and if you're somebody who is way long, a lot of tech stocks like i am, you're somebody who is hedging right now. >> a lot of this josh hinging on where the nasdaq goes from here. it

you like apple.pple had a huge runup. >> had a higher runup than amazon, but it's trading at a 14.8 pe opposed to 183 pe. it has a much larger return on equity than amazon does. it pays a dividend, which amazon doesn't do. i mean, i would much rather own that. i'll tell you from the retail section, walmart is the only company i think can compete with amazon on the retail thing. it's bringing in its own prime. its prices are cheaper than amazon. it's the only company to compete. it's selling for 18 times pe opposed to 183. now, i realize the cloud stuff is very important for amson. >> right. >> but i'd rather have walmart and apple. >> all right. mr. santelli, stepping back from all of this, how do things look today for you, talking about treasury yields, the u.s. dollar, and it feels like people are just maybe starting to get back on the trump train here a little bit. >> well, you know, it's funny you mentioned that, kelly, because i always scrutinize markets to see any type of response that i could

we see that as central to our mission at apple.ason why two years ago we launched apple news, to give great stories, stories from across the political spectrum, stories on a range of topics and interests of wider reach. democracy, after all, depends on discourse. for our democracy to work, we are not just free to express ourselves in a sense, we are obligated to do so. if the public square falls sigh lent lent, the whole system is at risk. that's why at apple we are not just enabling others to speak up. we are doing so ourselves. hopefully, more and more people are coming around to the view that a company is not some faceless, shapeless thing that exists apart from society. a company is a collection of human beings and part of the fabric of our society. a company like ours has a culture. it has values, and it has a voice. apple has spoken out and will continue to speak out for what we believe as a company and the positions we take will continue to guide our actions. so we will continue to stand up for environmental protection. we w

apple are doing their thing.eople without a landline but with a crime account. is that why? there's tax policies, other things that go on globally that i think will affect them. i think the core technology is accelerating globally and the amount of people's lives they touch is accelerating. look at tesla. i don't think a lot of people auld have predicted under trump presidency the stock would be up in the first six months. this tech explosion is usurping some of the ability to legislate. chatter.ad lots of we haven't had lots of results. these companies are marching their policies internally down a path that is void of policy. companiesee these touching people's lives. you can't not own these stocks. they are accelerating. we have seen the tech sector dominated by individual countries dutch companies before. they were called ibm and microsoft. where should investors be looking for the next big thing? >> it's a great point. microsoft was a company that was dead for 15 years and they have done a wonderful job of re

it's specific apple trading analysis. you get the next 12 percentage points, you're at 900 billion on the market cap. i can guarantee you every news channel out there is going to have a little box in lower right that has an apple 1 trillion watch monitor on it just like we watched dow 20,000 or the bp oil spill. it will gain so much hype at a 900 billion that you're almost guaranteed to get it. >> how does this not a sell on the news come the eight in the fall? >> it might be. you could have a 10% drawdown in apple overnight. there's absolutely no reason to believe that just because they're an incredibly successful company, the stock will lose all volatility it's ever had. this is a name that's endured 20 and 30% drawdowns in most of the years since the iphone was originally launched in 2007. it's a decade of this product becoming bigger and better and more refined an more iterative and in the meantime, investors haven't been able to tuck it under their pillow. >> do you buy it at 154 or think it's going to be a sell on t

coming up, apple missed on revenue.nvestors are concerned with falling iphone sales and business in china. we will break it all down. plus, as facebook nears 2 billion monthly active users, could an ad slowdown be nearing? we will hear from sheryl sandberg on the social network's earnings report ahead. and our extended sitdown with twitter coo and ceo anthony noto about the company's latest media deal and capitalizing on trump. first to our lead. apple shares dropped after reporting quarter earnings with iphone revenue falling short. the iphone has always been the moneymaker for the company, but sales were basically flat year-over-year. not terribly surprising, given the anticipation for the next iphone launch in the fall, where we are expecting a big design overhaul. apple also announcing it generated $7 billion in revenue on services, which is 18% growth from a year ago. this as the sector's ceo says he expects to double over the next four years. we spoke with our bloomberg contributor david kirkpatrick and an analyst

what is apple going to do?arterly calls we've asked that question. >> i think it was cramer this morning who suggested they needed to do some larger acquisitions to better enhance their services. >> here's my suggestion. buy cuba. join nafta. they have favor bable trading relationships, costs come way down, there you go. >> the interesting question is if they get favorable treatment and can do acquisitions here in the u.s., what does that do to the stocks that have been frequently mentioned like netflix? i think that's an interesting conversation to have, but we're talking about corporate tax reform and repateuation like it's some kind of a slam dunk. it doesn't happen on it own. it's part of a much larger conversation. >> shrinking by 20%. >> the gains here to date in tech, that's where we started this part of the conversation, are they sustainable? >> apple's up 26%. facebook which reports. amazon, 26,al bah bet, 18. >> amazon reporting a 25% earnings quarter. apple is growing its earnings. google is growing

>> it is worth looking at how apple's r&d spending increased.f people think it has to do with new products. a significant -- cigna of your part of that is bringing the -- developing things like chips. it helps their margins. even if they come underpricing areser -- pressure, they able to squeeze more out of what they make. they are able to broadly continue. >> a quick question on the dividends. this ramp up in the stock price the we have seen has put dividend yield write-down. not competitive with the rest of the s&p 500. are they going to do something to make that look a bit more exciting? >> it is hard to predict what they do on dividends and a quarter basis. announcements, how they put that in dividends and buy back, those are comments people will listen for on the call. i'm sure the question will come up and what the reaction is to that will have a big impact. ahead to the iphone eight, will we actually get anything on that today? will there be any hints? >> they often make very vague comments about having new products and we are expecting t

i look at apple. great company.st in cash, and their earnings were up but they missed revenues. they were supposed to come, i think, at 52.9 billion for the quarter and the analysts expectations were 53.02. i mean really? if you're going to invest for the long term, there's plenty of value out there. >> so you liken a company like apple, neil, even though it is part of this whole phenomenon of a couple of very small number, big cap tech names just running this year? >> well, there are. but you have, for instance, tesla. tesla is an emotional trade. they've never cash flowed out. they don't have earnings. what are you going to do on something like that, but it is an emotional trade. when you get emotion involved in any type of investment decision, at some point in time it is going to get ugly. >> yeah. tesla shares were down in the session today. of course we're awaiting results. facebook's after hours. charlie, you know, what we have stopped talking about is the financials. what we have stopped talking about is the